SAP IBP


Supply Chain Management: SAP IBP

Disruptive events are rapidly changing global supply chains. It is essential to create a new blueprint designed for agility and proactive response, ensuring unified planning, faster response, and visibility.

What Exactly Is SAP IBP?

SAP Integrated Business Planning (IBP) is cloud-based planning software for supply chain management. Using real-time information, it helps companies respond more quickly to market and business volatility. The objective is a process to translate desired outcomes into financial and operational requirements, maximizing profit and cash flow while minimizing risk.

SAP IBP consists of several modules which can be used independently as well:

  • IBP for Demand
  • IBP for Inventory
  • IBP for Response and Supply
  • IBP for Sales and Operations Planning (for fully integrated S&OP processes)
  • IBP Supply Chain Control Tower (for real-time control, analysis, and management of supply chains)

Key features include:

Supply Chain Management: SAP IBP

Disruptive events are rapidly changing global supply chains. It is essential to create a new blueprint designed for agility and proactive response, ensuring unified planning, faster response, and visibility.

What Exactly Is SAP IBP?

SAP Integrated Business Planning (IBP) is cloud-based planning software for supply chain management. Using real-time information, it helps companies respond more quickly to market and business volatility. The objective is a process to translate desired outcomes into financial and operational requirements, maximizing profit and cash flow while minimizing risk.

SAP IBP consists of several modules which can be used independently as well:

  • IBP for Demand
  • IBP for Inventory
  • IBP for Response and Supply
  • IBP for Sales and Operations Planning (for fully integrated S&OP processes)
  • IBP Supply Chain Control Tower (for real-time control, analysis, and management of supply chains)

Key features include:

  • Supply Chain Control Tower: A visual dashboard of data and KPI’s across the enterprise supply chain.
  • Demand Management: Full transparency with options for time series forecasting using algorithms and models.
  • Stock Management: Optimize target inventory to exceed customer service levels, while balancing costs and risk.

The most important functions of SAP IBP are:

  • Real-time planning for balancing supply and demand
  • Forecasting functions
  • Strong performance based on the SAP HANA platform
  • User friendly with vivid visuals
  • Ability to test and compare scenarios
  • Connection with Microsoft Excel.

The Difference Between SAP IBP and APO

SAP IBP is the next-generation planning tool for supply chain management. It has new innovative features and functions compared to SAP Advanced Planning and Optimization (APO). SAP IBP offers a multi-echelon inventory solution that APO does not carry. Many of the aggregation/disaggregation features of IBP for S&OP are only theoretically possible in APO. It is estimated that SAP APO will be maintained until 2025, then SAP IBP will replace it.

Technical resource partners for consideration might beSAP,  Gib or Reveal.

Further Insights for SAPinsiders

  • How to Build a Resilient and Efficient Supply Chain with Robust Sales and Operations Planning Using SAP IBP_S4HANA. Ulaganathan Balakrishnan, shares an article detailing experiences around implementing S&OP across many diverse industries.
  • Leverage SAP Integrated Business Planning for Forecasting. John Yuva of SAPinsider and  Marco Sisfontes-Monge, Managing Partner of Arellius Enterprises, conduct a Q & A with insights about how a robust system can adjust forecasting needs quickly based on changing market conditions.
  • 5 Steps of S&OP to Achieve an Integrated Business Plan. Venkata Ramana Nethi from Schlumberger discusses understanding the framework, key activities, inputs, and outputs of S&OP with the SAP IBP

32 results

  1. Inventory Optimization

    Inventory Optimization in SAP IBP

    Reading time: 3 mins

    Among many other features that SAP ICP has for integrated demand planning, inventory management is a critical one. Respondents highlighted inventory management as one of the key focus areas in our recent research on supply chain planning in the cloud. With the increased complexities in the supply chain and the severe disruptions that many supply…
  2. Promotion Planning SAP IBP

    Promotion Planning and Management with SAP IBP

    Reading time: 2 mins

    Demand forecasting was highlighted as a key challenge in SAPinsider's recent research Supply Chain Planning in The Cloud. The quality of forecasts also plays a key role in inventory management, which has emerged as another key focus area for SAPinsiders. We will also publish a research report focused on this specific topic of inventory management…
  3. scm planning

    Supply Chain Planning Integration Imperative

    Reading time: 2 mins

    Supply chain planning solutions have existed for decades now. However, as technology and business requirements evolve, so do these solutions. New technologies and capabilities emerge that integrate with existing supply chain planning solutions and contribute to the evolution of planning solutions. A good example is the cloud. SAPinsider recently published a research report, Supply Chain…
  4. Ecommerce image

    Increase Service Levels and Lower Inventory with SAP DDMRP

    Reading time: 4 mins

    Demand-driven material requirements planning (DDMRP) is a solution to plan materials and inventories. While traditional MRP does a respectable job of planning, DDMRP improves on that functionality to work better in a volatile environment. It enables companies to get closer to customers’ requirements, promoting faster decisions at the planning and execution level. Why can’t sales,…
  5. Ecommerce image

    The Art of Forecasting

    Reading time: 5 mins

    What is Demand Sensing? Demand sensing is new to most organizations. It is a forecasting method that uses real-time information and mathematical techniques to create an accurate forecast of demand; based on current supply chain realities. The objective is to overcome latency issues, allowing planners to better anticipate short-term changes in demand. If “art” can…
  6. Ecommerce Image

    Infuse Accuracy and Speed into your Supply Chain Planning

    Reading time: 4 mins

    Supply chains remain vulnerable to shocks and disruptions, making planning and execution challenging. Demand is difficult to forecast as the bullwhip effect continues for those contending with supply side shortages and logistic capacity constraints. Consumer expectations are driving increased pressure for end-to-end planning solutions to improve supply chain performance. Companies are working hard to build…
  7. Ecommerce Image

    Empower Planners with Response and Supply Planning

    Reading time: 3 mins

    Why is response and supply planning so important today? While companies are still facing challenges from an ongoing pandemic, the Russia-Ukraine war only adds to the disruptive landscape. Supply chain disruptions will continue to occur as part of our global new normal. Traditional planning approaches relied on monthly planning cycles with frozen planning horizons –…
  8. Enterprise Supply Chain Control Towers

    Reading time: 4 mins

    By Shashi Jina Supply Chain Management Research Director SAPInsider In our continuing series on supply chain visibility and the emergence of enterprise control towers, we exam the importance of data. The emergence of big data, artificial intelligence (AI), and machine learning (ML) have opened new possibilities for using real-time data to improve and drive greater…
  9. Demand forecasting image

    Leverage SAP Integrated Business Planning for Forecasting

    Reading time: 9 mins

    Robust is a difficult term to define. It’s something that is useful for the organization, something that makes sense. A robust demand forecasting process must be able to handle variances in demand and enable control your supply chain — with the intent of avoiding situations where you have 1,000 days of inventory or are missing…
  10. The Increasing Importance of Supply Chain Visibility and the Emergence of Enterprise Control Towers

    Reading time: 2 mins

    By Shashi Jina, Research Director, Supply Chain Management   As organizations continue their recovery from the pandemic, many will have to adapt and make permanent changes in their supply chain processes and technologies. The shift to establish and expand multi-echelon manufacturing and distribution networks closer to the customer, places greater emphasis on centralized, real-time visibility.…